China's Copper Bar and Billet Operating Rates Plummet Amid Raw Material Shortages
The comprehensive operating rate of China's copper bar and billet enterprises fell in July due to raw material shortages and weak demand. According to SMM, the operating rate dropped by 1.83 percentage points month-over-month and 0.56 percentage points year-over-year.
The polarization between large and small enterprises continued, with large enterprises maintaining a relatively strong production resilience due to long-term contracts and raw material channels. However, even they saw a pullback from June's rates.
Small and medium-sized enterprises were hit harder, with operating rates of 22.96% and 33.82%, respectively. They faced significant pressure from high-priced raw materials and insufficient end-user orders.
The supply constraints remained the core factor weighing on production, while demand-side pressures intensified as the industry entered its traditional consumption off-season in July.